MercoPress. South Atlantic News Agency
US says Germany must give “unequivocal” financial support to weaker Euro states
US Treasury Secretary Timothy Geithner at the G7 finance chiefs meeting in Marseille United States pressed Europe's strongest economies on Friday to give “unequivocal” financial support to weaker Euro zone states to overcome a debt crisis that threatens the world economy.
“It is completely within the capacity of the stronger members of the Euro area to absorb these costs,” US Treasury Secretary Timothy Geithner said as G7 finance chiefs gathered in Marseille to discuss how to revive a stalling recovery.
“Those costs would be much, much greater for them and their economies if they sit here and do nothing, and they recognize that,” Geithner told Bloomberg Television in comments that appeared aimed primarily at EU economic powerhouse Germany.
Ministers and central bankers were under pressure to calm the biggest confidence crisis in financial markets since the 2007-8 global credit crunch.
But a shock announcement that the top German official at the European Central Bank is leaving early in disagreement with the bank's policy of buying Euro zone government bonds to support the likes of Italy and Spain laid bare deep rifts over how to manage the debt crisis.
France has called for a coordinated response from the Group of Seven industrialized nations after mounting anxiety over Europe's debt crisis and the fragility of its banks caused a big fall in world stock markets in recent weeks.
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Read all commentslook it that, maffia at work.
Sep 10th, 2011 - 01:58 pm 0I guess that Europe does not yet see itself as “The United States of . . . ”.
Sep 10th, 2011 - 05:02 pm 0In the US the transfers of support from the rich states to the poor states seem to be less contentious that 'German money' going to Romania, Greece, etc.
The US are 50 “Provinces” of 1 state. Germany has 16 “provinces”. The poor in the north and east, the richer in the south. The German money is transferred to the poor from the rich province - in 1 country, but not into different European countries. How can we?
Sep 10th, 2011 - 06:40 pm 0However it is fact that Germany is the bigges net payer in the EU. That´s enough.
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